European Central Bank board member Isabel Schnabel spoke over the weekend at Jackson Hole.
Talking tough on the fight to lower inflation:
- "Even if we enter a recession, we have little choice but to continue the normalization path,"
- "If there was a de-anchoring of inflation expectations, the effect on the economy would be even worse."
- said rates need to stay high, cautioned against pausing on early signs of a potential turn in inflationary pressures - central bank rate setters should instead signal their "strong determination" to bring inflation back to target quickly
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Words are easy, there will be questions on the will, political mainly, to hike rates into and in a recession.
